5:41 pm
April 6, 2013
Loonie said
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I just think financial professionals should have a consistent attitude. If they advocate long haul, then they should shut up when there are short term gains. And if they are in it for short term, they should sell when they make a profit and admit it when they take a loss from which they do not expect to recover.
They do. Just that there are multiple aspects to the financial business.
The buy side is responsible for delivering actual gains. They are the quiet folks who actually manage the money.
The sell side is responsible for selling product. They are the loudmouths one sees in the media all the time and who tell you "you could do so much better if…".
7:19 pm
October 21, 2013
No doubt, but I am talking about single individuals who speak with forked tongue. They are on the sales side.
They reduce their credibility with me every time they act inconsistently - which is most of the time.
I kind of feel sorry for them because I consider them personally vulnerable. They are not able to isolate their glee at short term gains from their long term goals, and will be tempted to sell prematurely on a downturn - not that they would likely ever admit this to me!
If you are truly a long-term investor, then you should be concerned about nothing but the quality of your investments and the date you will be selling them (and possibly the dividends you take out along the way, if you do). When you get within 10 years of the goal (or more), you should be looking for good times to sell.
Short term gains are irrelevant if you are a long-term person, and bragging about them makes you look stupid, to me at least. Very few people are disciplined enough to do it right and many aren't even aware. As you say, there is a constant barrage of short term thinking in the media - and resultant anxieties.
But if you really are a shorter-term investor and want to do that right, then don't brag about your short term gains and fail to cash them in. Be consistent. Take the money and run! I won't say where.
Please write your comments in the forum.